Handyman Special

If a house appraises for $26,000, but needs $25,000 in repairs, how much should I offer to buy it?

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Bill's Answer: Bills.com Resident Expert

The real question is, "What is the value of comparable properties in the area?"

If the value of comps are in the $26,000 range, then you should pay $1,000 because the appraisal price is unrealistic and $1,000 is what the net value of the house is worth today.

On the other hand, if the value of comps are in the $50,000 to $60,000 range, then the appraiser had a great eye for spotting the existing damage and priced the house accordingly. If the comps are $51,000 or more, then $26,000 is a fair market value of the property.

For a longer discussion of valuing houses, see the Bills.com resource House Value.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

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